Foran Mining Corporation (TSX: FOM) (OTCQX: FMCXF) is pleased to announce it has received approval for and entered into a strategic equipment finance arrangement with Sandvik Financial Services Canada. The Facility is intended to cover the initial battery electric vehicle mining fleet and essential components, such as charging stations and batteries, provided by Sandvik Mining and Construction Canada Inc. and used for development and operation of its 100%-owned McIlvenna Bay Complex in Saskatchewan.

The Facility allows for draws up to C$67 million and will be initiated, at the Company’s election, as equipment is delivered to the project site. Repayments on draws will commence immediately over a 60-month period. Interest accrued on draws against the Facility will be indexed to 5-year Canadian overnight index swaps plus a spread of 3.20%. The rate of interest will become fixed for each individual draw, at the time of drawdown.

James Steels, Foran’s Chief Financial Officer, commented “We are extremely delighted to secure this noteworthy arrangement with Sandvik, complementing our financing package for McIlvenna Bay at an attractive cost of capital. Foran and its tax advisors have also reviewed the scope of planned purchases to be incurred under this facility, in conjunction with Canadian Federal legislative proposals relating to the Income Tax Act, and believe the purchases are likely to qualify for an up to 30% refundable investment tax credit associated with the proposed Clean Technology Investment Tax Credit. This is yet another positive step in our journey to unlocking McIlvenna Bay’s value and advancing our targeted carbon reduction initiatives, all aligned with our primary objective of maximizing risk-adjusted returns for shareholders.” 

About Foran Mining

Foran Mining is a copper-zinc-gold-silver exploration and development company, committed to supporting a greener future, empowering communities and creating circular economies which create value for all our stakeholders, while also safeguarding the environment. The McIlvenna Bay project is located entirely within the documented traditional territory of the Peter Ballantyne Cree Nation. The Company also owns the Bigstone Project, a resource-development stage deposit located 25km southwest of its McIlvenna Bay project.

McIlvenna Bay is a copper-zinc-gold-silver rich VHMS deposit intended to be the centre of a new mining camp in a prolific district that has already been producing for 100 years. McIlvenna Bay sits just 65km West of Flin Flon, Manitoba and is part of the world class Flin Flon Greenstone Belt that extends from Snow Lake, Manitoba, through Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of over 225km.

McIlvenna Bay is the largest undeveloped VHMS deposit in the region. The Company announced the results from its Feasibility Study on February 28, 2022, outlining that current mineral reserves would potentially support an 18-year mine life producing an average of 65 million pounds of copper equivalent annually. The Company filed a NI 43-101 Technical Report for the McIlvenna Bay Feasibility Study on April 14, 2022. The Company filed a NI 43-101 Technical Report for the Bigstone Deposit resource estimate on February 11, 2022. Investors are encouraged to consult the full text of these technical reports which may be found on the Company’s profile on www.sedar.com.